Negotiating While Purchasing a Car

Haggling, or negotiating the price, is one area where people feel they can save money when buying a car. This is not for everyone. To negotiate effectively, you must be a very assertive person and be willing to walk away from the deal if you do not get the price that you are seeking.

Haggling over the price of a car may be more trouble than it is worth. Some dealerships call themselves "not negotiable" dealerships. This means that they have a price on the car and absolutely will not negotiate with you. Other dealerships plan for this, and mark the price of the car up so that you can negotiate.

If you are not ready to walk away from a potential purchase, then do not negotiate over the price. A better option may be to negotiate over options if you are buying a new car, or to negotiate over warranties if buying a used car. Warranties and options are items that dealerships use to give themselves some flexibility. While you may pay a higher price overall, you are getting the options and warranties cheaper than if they were bought separately.

If you are buying from an individual, negotiating over price is in your best interest. Individuals selling cars want to sell. Be careful though; some individuals selling cars are turned off by this tactic. Use your best judgment when it comes to negotiating. And know that all people- individuals and dealerships- expect a certain amount of haggling.